According to Canadian finance minister Jim Flaherty, the country is going to bring new anti-money laundering and anti-terrorism funding bills aimed at preventing the misuse of virtual currencies, such as the popular Bitcoin. Though Bitcoin was first developed in 2008, it has seen a recent growth in popularity, with several cases in the United States currently pending that deal with money laundering and other illegal activities through the cryptocurrency. It's lack of a central structure makes it an ideal target for those who are looking to commit fraud.
The Canadian government has announced its intention to tighten the regulations around the use of virtual currencies as part of the ongoing federal budget negotiations. The budget document said the government will review the emerging risks of enterprises such as Bitcoin that "threaten Canada's international leadership in the fight against money laundering and terrorist financing." The proposed legislation is coming following a recommendation from the Senate Banking Committee from March 2013.
A recent report from the International Institute of Finance (IIF), which represents over 400 banks and financial companies around the globe, said that Bitcoin's future as a broadly accepted form of currency is very limited. It faces resistance due to its lack of backing from a central bank or government and several countries, such as China and Russia, have already begun to crack down on its use. It is far too unstable a currency for people to invest in and is riddled with ways for people to launder money or commit other forms of fraud.
Even if your institution does not accept Bitcoin as a form of payment, it can still be open to accepting laundered money. Our software will give you the tools to effectively combat money laundering, so call AML Partners today for more information.